The VR Contingency Fund is a personal fund for VR members, in each member’s name. Members choose how they use their balance in the fund to pay for services or goods, within the limits set by the union and detailed in the fund’s regulations.
Below is a list of what the fund balance can be used to pay for, though this list is not exhaustive:
| Unemployment | Heart health screening | Education, vocational school tuition |
| Children, school supplies | HL Clinic | Massage |
| Children, leisure activities | Chiropractor | VR vacation home, rental |
| General travel expenses | Cancer screening | Couples therapy |
| Travel, flights | Laser surgery | Psychological services |
| Travel, accommodation | Fitness | Physical therapy |
| Parental leave, loss of income | Fitness equipment | Retirement / 60+ |
| Glasses | Medication | Dental care |
| Health courses | Medical expenses | Insurance, life insurance |
| Health institutions | Acupuncture | Insurance, illness |
| Hearing aids | Education, book purchases | Illness / Disability |
Fund contributions
An annual deposit is made to the VR Contingency Fund after the Annual General Meeting held in March. Contributions are income-based, and the annual deposit amounts to approximately 4% of one month’s wages on average based on the previous year. All VR members receive an annual contribution to the Contingency Fund, regardless of how long they have been with VR or what their income is.
Balance Accumulates Year to Year
The VR Contingency Fund is based on accumulation. If no withdrawals are made from the fund for a while, whether the full amount or part of it, the balance remains and the next deposit adds to the existing amount. In this way, members can build up a personal contingency fund. Calculate what would be deposited into your VR Contingency Fund, see more here.
The balance begins to expire (25%) two years after leaving the union and expires in full after five years.
No Annual Limit
To receive a grant, the member must have a balance in the fund. There is no maximum amount for payments from the fund, as long as a balance is available.
In most cases, an application must be submitted and a receipt for incurred costs must be provided. The cost is reimbursed in full, if the balance allows, minus income tax where applicable.
Other Grants / Union Subsidies
Grants from the VR Sick Pay Fund are as follows:
- IVF grant: ISK 250,000 for each VR member, paid once.
- Travel cost grant to access specialist medical services: ISK 150,000 per calendar year per VR member.
- Birth grant of ISK 100,000 for each child born after 26 March 2026. The grant also applies to the adoption of children under the age of 18.
Icelandair gift certificates are as follows:
- Each VR member may purchase four certificates per year. Each is subsidized by ISK 6,100 and has a value of ISK 30,000.
Taxation of Grants – Important to Keep in Mind
Payments from the fund are generally taxable and the taxes are deducted from the amount prior to payment. The taxation is taken out of the grant amount from the VR Contingency Fund according to tax level 1.
There are three exceptions from this:
- Physical exercise and rehabilitation comparable to other sports are maximum 85.000 ISK pr. year (based on the year 2026).
- Payment for cost of accommodations is maximum 79.000 ISK pr. year. This only applies to accommodations such as vacation houses, hotels or hostels.
- Vocational training, grants from the fund due to vocational studies.
Each payment receipt may only be used once, but it may be up to two years old when applying for reimbursement.